India floods: rescuers search for survivors among mud and debris Death toll from heavy monsoon rains on western coast climbs to , with nearly 90, people evacuated Published: PM Mar 08, · Women Education in India Essay: Women’s Education in India is a long-standing necessity. Women are often stereotypically viewed as the caretakers of the house. However, in the modern age, women’s rights are being recognized; most importantly, their right to receive an education. Women need to be given equal opportunities as men, especially when it comes [ ] Jun 23, · The ancient caste system of India, which has resulted in the social and economic oppression of the Dalits, continues to play a dominant role in India. The Dalits, also known as the scheduled caste or untouchables, have experienced consistent
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The development experiences of Third World countries since the fifties have been staggeringly diverse—and hence very informative. Forty years ago the developing countries looked a lot more like each other than they do today. Take India and South Korea. Life expectancy was about forty years and fifty years respectively. In both countries roughly 70 percent of the people worked on the land, and farming accounted for 40 percent of national income.
The two countries were so far behind the industrial world that it seemed nearly inconceivable that either could ever attain reasonable standards of living, let alone catch up. If anything, India had the edge. Its savings rate was 12 percent of GNP while Korea's was only 8 percent. India had natural resources.
Its size gave its industries a huge domestic market as a platform for growth. Its former colonial masters, the British, left behind railways and other infrastructure that were good by Third World standards.
The country had a competent judiciary and civil service, manned by a highly educated elite. Korea lacked all that. In the fifties the U. government thought it so unlikely that Korea would achieve any increase in living standards at all that its policy was to provide "sustaining aid" to stop them falling even further. Less than forty years later—a short time in economic history—South Korea's extraordinary success is taken for granted.
None of today's rich countries, not even Japan, saw such a rapid transformation in the deep structure of their economies, rural development in india essay. India is widely regarded as a development failure. Yet over the past few decades even India has achieved more progress than today's rich countries did over similar periods and at comparable stages in their development, rural development in india essay.
This shows, first, that the setbacks the developing countries encountered in the eighties—high interest rates, debt-servicing difficulties, falling export prices—were an aberration, and that the currently fashionable pessimism about their future is greatly overdone. The superachievers of East Asia South Korea and its fellow "dragons," Singapore, Taiwan, and Hong Rural development in india essay are by no means the only developing countries that are actually developing.
Many others have also grown at historically unprecedented rates over the past few decades. As a group, the developing countries— of them, as conventionally defined, accounting for roughly three-quarters of the world's population—have indeed been catching up with the developed countries. The comparison between India and South Korea shows something else. It no longer makes sense to talk of the developing countries as a homogeneous group.
The East Asian dragons now have more in common with the industrial economies than with the poorest economies in South Asia and sub-Saharan Africa. Indeed, rural development in india essay, these subgroups of developing countries have become so distinct that one might think they have nothing to teach each other, that because South Korea is so different from India, its experience can hardly be relevant. That is a mistake.
The diversity of experience among today's rural development in india essay and not-so-poor countries does not defeat the task of analyzing what works and what doesn't. In fact, it is what makes the task possible. Lessons of Experience The hallmark of economic policy in most of the Third World since the fifties has been the rejection of orthodox free-market economics. The countries that failed most spectacularly India, nearly all of sub-Saharan Africa, much of Latin America, the Soviet Union and its satellites were the ones that rural development in india essay the orthodoxy most fervently.
Their governments claimed that for one reason or another, free-market economics would not work for them. In contrast, the four dragons and, more recently, countries such as Chile, Colombia, Costa Rica, Ivory Coast, Malaysia, and Thailand have achieved growth ranging from good to remarkable by following policies based largely on market economics.
Among the most important ideas in orthodox economics is that countries prosper through trade. In the sixties and seventies the dragons participated in a boom in world trade.
Because the dragons succeeded as exporters, they had abundant foreign exchange with which to buy investment goods from abroad. Unlike most other developing countries, the dragons had price systems that worked fairly well. So they invested in the right things, in ways that reflected their comparative advantage in cheap, unskilled labor.
Some economists still dismiss the dragons as special cases, but for reasons I find specious. They argue that Hong Kong and Singapore are small hitherto smallness had been regarded as a disadvantage in development ; that they are former colonies with traditions of excellence in public administration like India and many others ; that they have been generously provided with foreign capital like Latin America. These economists also argue that Taiwan and South Korea received generous foreign aid like many other developing countriesrural development in india essay, and have even argued that their lack of natural resources was an advantage.
What was most unusual about these countries, in fact, was a relatively market-friendly approach to economic policy. The countries that failed, often guided by "experts" in the industrialized world, are the ones that gave only a small role, rural development in india essay, if any, to private enterprise and to prices that are unregulated by government. Government planners concentrated on broad aggregates such as investment, consumption, and savings.
Their priority was investment—the more, the better, regardless of its quality. Most governments also thought that their economies were inflexible and could not adjust to changing conditions. The export earnings of developing countries were regarded as fixed, rural development in india essay, for instance, and so was the import requirement for any given level of domestic production.
The possibilities for substituting one good for another in response to a change in price were denied or ignored. The idea that workers respond to changes in incentives was likewise dismissed. This assumed lack of responsiveness led the planners to believe that prices, rather than providing signals for the allocation of resources, could serve other purposes instead.
For instance, with direct controls they could be kept low to reduce inflation, or raised here and there to gather revenue for the government. Taken to the limit, this "fixed-price" approach leads to regulation by input-output analysis.
The idea is to tabulate the flow of primary, intermediate, and finished goods throughout the economy, on the assumption that each good requires inputs of other specific goods in fixed proportions.
When all the cells in the table have been filled in, a government needs only to decide what it wants the economy to produce in order to know exactly what the country needs to import, good by good.
India went in for this sort of planning in a big way. More than a few of today's leading free-market economists have worked within India's planning system or have studied it in detail, rural development in india essay, and intimate contact with it leads them to one inescapable conclusion: government planning of the economy does not work.
Professor Deepak Lal of London University, a leading proponent of market economics rural development in india essay the Third World, mentions his experience with India's planning commission in his book The Poverty of Development Economics. He calls the antimarket approach favored in so many countries the "dirigiste dogma. When Alan Garcia's government came to power in the summer ofPeru was already in a bad way, thanks largely to high tariffs and other import barriers, restrictive labor-protection laws, extensive credit rationing, high taxes, powerful trade unions, and an extraordinarily elaborate system of regulations to control the private sector.
One result was Peru's justly celebrated black market, or "informal economy," described by Hernando de Soto in his modern classic, The Other Path. The other result was great vulnerability to adverse economic events.
The early eighties delivered several, including a world recession, high interest rates, a drying up of external finance, and declining commodity prices. Garcia's policy was based, he said, on two words: control and spend. After imposing price controls, he sharply increased public spending. The program succeeded at first, rural development in india essay.
Gross domestic product GDP grew 9. But by the spring of inflation was running at 1, percent a year; by the end of the year it was 6, percent. After that, output and living standards collapsed. Inthe economy a wreck, Garcia was voted out of office. The dirigiste dogma has proved equally damaging in Africa. Take Ghana. When it became independent init was the richest country in the region, with the best-educated population.
It was the world's leading exporter of cocoa; it produced 10 percent of the world's gold; it had diamonds, bauxite, and manganese, and a flourishing trade in mahogany, rural development in india essay.
Investment slumped from rural development in india essay percent of GDP in the fifties to 2 percent byand exports dropped from more than 30 percent of GDP to 4 percent. The country's leader at independence, Kwame Nkrumah, was a spokesman for the newly independent Africa. He said the region needed to develop its own style of government, suited to its special circumstances. He spent vast sums on megaprojects. As economic troubles mounted, he nationalized companies and followed with capital repression.
Under his regime capital flew abroad, and people with skills and money did the same. The kleptocrats government officials who steal large amounts ran the country into the ground. In the early eighties a new government came to power and at last began to steer the economy along orthodox lines. Until then, Ghana had been to Africa what Peru is to Latin America: a distillation of everything that has gone wrong with the continent's economies.
In the Third World, where so many people live off the land, agricultural development is crucial. Ghana provides a startling case study in how to wreck the farm sector. The means was the agricultural marketing board—a statutory monopoly that bought farmers' crops at controlled prices and resold them either at home or abroad.
The prices paid to farmers rural development in india essay kept artificially low, on the assumption that farmers ignored price signals.
Between and the price of consumer goods went up by a factor of twenty-two in Ghana. The price of cocoa in neighboring countries went up by a factor of thirty-six. But the price paid by the cocoa marketing board to Ghana's farmers went up just sixfold.
In real terms, therefore, the returns to cocoa farmers vanished. The country's supposedly price-insensitive farmers responded by switching to production of other crops for subsistence, and exports of cocoa collapsed. Peru and Ghana are extreme cases, but they show in the starkest way that prices do matter in the the Third World and that rejecting market economics carries extremely high costs.
The essential elements of a development strategy based on orthodox economics are macroeconomic stability, foreign trade, and strictly limited intervention in the economy. With policies under these three headings, governments can foster enterprise and entrepreneurship, the irreplaceable engines of capitalist growth. The Macroeconomic Foundation Experience shows that high and unstable inflation can harm growth.
A noninflationary macroeconomic policy is, therefore, a prerequisite for rapid development. Control of government borrowing is the crucial element in such a policy.
When public borrowing is rural development in india essay, governments are soon obliged to finance it by printing money, and rising inflation then follows.
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India floods: rescuers search for survivors among mud and debris Death toll from heavy monsoon rains on western coast climbs to , with nearly 90, people evacuated Published: PM Mar 08, · Women Education in India Essay: Women’s Education in India is a long-standing necessity. Women are often stereotypically viewed as the caretakers of the house. However, in the modern age, women’s rights are being recognized; most importantly, their right to receive an education. Women need to be given equal opportunities as men, especially when it comes [ ] Oct 29, · Introduction Urban areas have been recognized as “engines of inclusive economic growth”. Of the crore Indians, crore live in rural areas while crore stay in urban areas, i.e approx 32 % of the population. The census of India, defines urban settlement as: All the places which have municipality, corporation, cantonment board Continue reading "Urbanization in India
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